EUR/USD Builds ABC Retracement back to Support Trend Line

Szeptember 12, 2017 06:00

EUR/USD

4 hour

The EUR/USD continued to move lower as it approaches the support trend line (blue) yet again. The bearish bounce is indicating that the recent bullish momentum is probably a wave B (red), which is part of a larger ABC (red) correction.

1 hour

The EUR/USD did not confirm the bullish break yesterday and in fact invalidated the bullish wave 4. A bearish 5 wave pattern seems to be unfolding within wave C (red).

GBP/USD

4 hour

The GBP/USD is challenging a deep 88.6% resistance Fibonacci retracement level of wave 2 vs 1 (red). A break above the 100% Fib level invalidates that wave 2 (red). Price could either be in an ABC (purple) correction or in a wave 123.

1 hour

The GBP/USD is retested an important resistance trend line (red) but failed to break above it. This could have completed wave 5 (green) if price manages to break below the 61.8% Fib of wave 4 vs 3.

USD/JPY

4 hour

The USD/JPY showed a strong bullish reaction at the 61.8% Fibonacci target of wave C vs A (brown), which could indicate a change of trend direction. A break above resistance (brown) would confirm that. A break below support (blue) could price challenge the bottom.

1 hour

The USD/JPY is showing strong bullish momentum, which makes a wave 4 (green) unlikely but price needs to break above 109.87 to invalidate it. The alternative is a 123 (blue) bullish wave count.

Follow @ChrisSvorcik on twitter for latest market updates.
Connect with Chris Svorcik on Facebook for latest Forex and education tips.

MT4 Supreme Edition + Volatility Protection